Letter to BS: ICICI Bank to probe allegations against CEO Kochhar

This refers to “ICICI bank to probe role of CEO Kochhar” (May 31). Now that ICICI Bank board has agreed to probe the alleged nexus between Chanda Kochhar’s husband Deepak Kochhar and Videocon Group chairman Venugopal Dhoot over a loan extended to Videocon group, there will be indirect pressure on ICICI Bank CEO Chanda Kochhar to step down, at least temporarily, if not permanently. 

This is after a new whistle-blower has complained against her. If Kochhar remains in office while the investigation is on, it will raise eyebrows. 

This inquiry should not look like a hogwash. In 2001, UTI Bank's chairman P J Nayak went on leave after the Joint Parliamentary Committee report alleged that he stood to gain from the failed merger with Global Trust Bank. Kochhar can also take a leaf out of Nayak's book and step aside till the inquiry is finished. It will definitely send a positive and strong signal to all stakeholders of ICICI Bank along with industry that is watching this whole episode anxiously. 

This enquiry also validates the fact that in April, when the non-executive chairman of ICICI Bank, M K Sharma, had refused a probe on this matter, the board had acted in haste. Corporate governance is one of the most critical issues for corporates, more so for a financial institution where integrity is paramount and non-negotiable. 

Bal Govind Noida

Letters can be mailed, faxed or e-mailed to: 

The Editor, Business Standard

Nehru House, 4 Bahadur Shah Zafar Marg 

New Delhi 110 002 

Fax: (011) 23720201 E-mail: letters@bsmail.in

All letters must have a postal address and telephone number